All Forum Posts by: Greg Miller

You can buy software that can do the same thing and is much quicker.  I receive weekly post cards from numerous wholesalers that utilize this software.

If it was built in 2010, then I would use 6-8% for CAPEX. You just never know when something is going to break. I use 10% CAPEX in my calculations, but my single family houses are 50-60 years old. I would ask a real estate agent to provide a CMA analysis. This will tell you what the similar properties have sold for in the area.

As for the price, you are paying $33k per unit for a 1BR that is 8 years old.  It seems pretty reasonable to me.  City-data.com is a great website to find the detailed profile for your zip code. 

Have a local real estate investor review the deal before you move forward.  Another investor can provide better insight than an attorney that you will charge you for there time.

Larry,

I would raise your interest rate to 5.5-5.75% range.  With the Fed raising rates two weeks ago, I highly doubt that you can get a 5.0% interest rate anymore.  Your repairs/capex rate is too low at 4% combined.  HVAC and roofs need to be updated at some point in the future.  Properly plan for them on the front end.  Your monthly income comes out to $375/unit/month.  This is pretty low...just plan for potential tenant credit issues.  There is a reason they can only afford this amount.  One acre is big.  Have you received a quote on the lawn mowing cost?  Trying to give you a few things to think through.  Your Cash on Cash is pretty strong.  I always ask why someone is selling their property...you can gain some good insight by listening.

Sounds like a very smart first move on your real estate investment journey.

Sounds like a solid winner for your first one!  Keep it rolling.

This can be a good strategy when first starting out.  Just make sure that you fact the interest costs in your calculations up front.  I would first meet with a local bank to understand the refinancing part.  You should know the entire process from beginning to end prior to moving forward.  Signing up for the hard money loan is the easy part.  You do not want to be a situation when you are figuring out the refinance steps after the hard money is in place. 

One wonderful idea is to ask a local investor that has executed this strategy previously. 

Sorry, but I have never seen a program worth paying $10k. 

I don't know if I fully understand your question. Here is how the process works. The bank conducts an appraisal on the property. Say it is now worth $150k. Your mortgage is down to $80k. Most banks will give you up to 80% of the appraised value minus the mortgage balance. In this case, it would amount to a $40k HELOC. Hope this helps!!

Conduct a "buyers open house" for real estate investors.  This way you can get everyone interested through the property in a two hour window, while minimizing distractions for the owner of the property.  This technical can be successful for everyone involved.